Berenberg cuts Ajax, keeps Borussia as only 'buy'-rated club in Europe

Eagle Football SA

13/05/2024 12:38

** Berenberg cuts Ajax  AJAX.AS  to "hold" from "buy" citing
managerial issues, poor sporting performance and the lack of
participation in the revamped Champions League which creates
significant income loss
    ** With the Ajax downgrade, Borussia Dortmund  BVB.DE 
remains the only "buy"-rated continental European football club
rated "buy" by the broker
    ** It expects the German club to maintain positive net
profitability in 2023/24 with return of the dividend, supported
by Borussia's strong performance in the transfer market and the
Champions League and Club World Cup participation, which offer
further revenue growth opportunities
    ** "Borussia Dortmund has the best-quality management, in
our view, and is the only club that we expect to generate
sustainably positive profitability from this year onwards,"
Berenberg analyst Trion Reid writes
    ** The broker reiterates its "hold" rating on Eagle Football
 EEFG.PA  and Juventus  JUVE.MI , noting the latter remains
indebted and unprofitable despite its likely return to the
Champions League next season and access to the FIFA Club World
Cup

 (Eva Orsolya Papp)
 ((evaorsolya.papp@thomsonreuters.com))